- Petitioner
- Republic of the Philippines
- Respondent
- The Honorable Court of Appeals
- Citation
- G.R. No. 103073
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Vitug, J.
- Decided
- March 13, 2001
Summary
This Supreme Court resolution involved R & B Surety's motion for reconsideration regarding its liability under customs bonds that guaranteed Endelo's obligation to re-export imported materials. When Endelo failed to re-export due to license suspension, the Bureau of Customs sought collection from the surety. The Court partially granted the motion, holding that while the license suspension did not discharge the surety from liability, the surety's liability must be limited to the face value of the bonds under Section 176 of the Insurance Code. The decision established important precedents on surety liability limits in customs bonds and the effect of principal's license suspension on surety obligations. R & B's liability was reduced from P4,305,017.00 to P2,588,568.00 plus legal interest, while maintaining solidary liability principles under the Civil Code.